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The Effects of Mandating Benefits Packages

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  • Olivia S. Mitchell

Abstract

This paper identifies and, where possible, quantifies potential labor market consequences of government mandating of employee benefits. The author argues that mandating benefits could increase benefit coverage and generosity for numerous workers and their families. However, even when mandating benefits does improve benefit provision, there will be offsetting effects including wage and other benefit cuts, reduced work hours, reduced employment, and possibly output reductions in covered sectors. Employer bias against "expensive to insure" workers may also result, producing labor market sorting and segmentation. In addition, many workers currently without benefit coverage are employees of small firms, women, pan-time and minimum wage workers. Frequently, mandated benefit proposals exclude or reduce coverage for these workers to alleviate the financial burden on small firms. As a result, many uninsured people will not be helped by the type of mandated employee benefit program currently under review. A separate approach would probably be needed to meet the needs of those not covered by mandated benefit programs.

Suggested Citation

  • Olivia S. Mitchell, 1990. "The Effects of Mandating Benefits Packages," NBER Working Papers 3260, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:3260
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    Cited by:

    1. Alewell, Dorothea & Pull, Kerstin, 2005. "Rechtsschutz für Mütter : eine ökonomische Analyse des Mutterschutzgesetzes und seiner Wirkungen auf die Beschäftigungssituation von Frauen (Legal protection for mothers * an economic analysis of the ," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 341-356.
    2. Olivia S. Mitchell, "undated". "Retirement Systems in Developed and Developing Countries: Institutional Features, Economic Effects, and Lessons for Economies in Transition," Pension Research Council Working Papers 94-3, Wharton School Pension Research Council, University of Pennsylvania.
    3. Bossavie, Laurent & Cho, Yoonyoung & Heath, Rachel, 2023. "The effects of international scrutiny on manufacturing workers: Evidence from the Rana Plaza collapse in Bangladesh," Journal of Development Economics, Elsevier, vol. 163(C).
    4. Dorothea Alewell & Kerstin Pull, 2005. "Die Neugestaltung der Finanzierung des Mutterschutzes - ein Kommentar zum Mutterschutz-Urteil des Bundesverfassungsgerichtes," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 58(04), pages 22-27, February.
    5. Budd, John W., 2000. "The effect of strike replacement legislation on employment," Labour Economics, Elsevier, vol. 7(2), pages 225-247, March.
    6. Christopher J. Ruhm, 1998. "The Economic Consequences of Parental Leave Mandates: Lessons from Europe," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(1), pages 285-317.
    7. Alewell, Dorothea & Pull, Kerstin, 2005. "Rechtsschutz für Mütter : eine ökonomische Analyse des Mutterschutzgesetzes und seiner Wirkungen auf die Beschäftigungssituation von Frauen (Legal protection for mothers * an economic analysis of the ," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 341-356.
    8. Christopher J. Ruhm, 1997. "Policy Watch: The Family and Medical Leave Act," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 175-186, Summer.
    9. Gruber, J., 1992. "The Efficiency of a Group-Specific Mandated Benefit: Evidence from Health Insurance Benefits for Maternity," Working papers 92-19, Massachusetts Institute of Technology (MIT), Department of Economics.
    10. Alewell, Dorothea & Pull, Kerstin, 2005. "Rechtsschutz für Mütter : eine ökonomische Analyse des Mutterschutzgesetzes und seiner Wirkungen auf die Beschäftigungssituation von Frauen (Legal protection for mothers * an economic analysis of the ," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 341-356.
    11. John T. Addison & W. Stanley Siebert, 1992. "The Social Charter: Whatever Next?," British Journal of Industrial Relations, London School of Economics, vol. 30(4), pages 495-513, December.
    12. Dorothea Alewell & Kerstin Pull, 2001. "An Internatioal Comparison and Assessment of Maternity Leave Regulation," Working Paper Series A 2001-02, Friedrich Schiller University of Jena, School of of Economics and Business Administration.
    13. Christopher J. Ruhm & Jackqueline L. Teague, 1995. "Parental Leave Policies in Europe and North America," NBER Working Papers 5065, National Bureau of Economic Research, Inc.
    14. Richard V. Burkhauser & Joseph F. Quinn, 1997. "Implementing Pro-Work Policies for Older Americans in the Twenty-First Century," Boston College Working Papers in Economics 378, Boston College Department of Economics.

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